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First video of liberated Kirkuk

Iraqi forces continue to re-establish control over northern regions, while facing little or no resistance from Kurdish militants.

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Kirkuk and its vast oil fields are now officially back under Iraqi control after years of illegal rule, first by the illegitimate ISIS terror group and since 2014 by unauthorised Kurdish militants. As Kirkuk falls outside of the constitutionally designated autonomous Kurdish regions of northern Iraq, there was never any legitimacy for the Kurdish regime’s rule.

Video has emerged of Iraqi troops entering the city centre where they faced no resistance from fleeing Kurdish Peshmerga militants.

Another video shows local Iraqis welcoming the troops as well as the Popular Mobilisation Forces (PMF) who have aided Iraqi regulars throughout the long battle against ISIS.

As I reported yesterday in the The Duran, this is significant as the majority Sunni population of Kirkuk has welcomed both a majority Shi’a Iraqi army as well as entirely Shi’a PMF forces:

“The Iraqi government claims to now be in full control of Kirkuk after taking the city centre and surrounding areas. Hours ago, Iraqi forces re-established control over the main city administration building as Kurdish Peshmerga have begun a mass retreat.

Iraq’s position, which is in keeping with Iraqi and international laws, is that troops were sent in to re-establish formal control over a city that was previously occupied by ISIS, and since around 2014, has been partly in the hands of Kurdish militants and self-proclaimed political leaders. Crucially, Kirkuk falls outside of areas designated as autonomous Kurdish regions, even though the Kurdish regime in Erbil attempted to claim Kirkuk by placing it on the map of a would be Kurdish statelet, as part of the 25 September secession referendum. This provocative move was among Iraq’s gravest grievance against Erbil during the course of the referendum.

Earlier, Kurdish media released a statement from the Peshmerga stating that Iraq will pay a “heavy price” for what it described as a “flagrant declaration of war”. However, it is theoretically impossible for Iraq to declare war on forces whose very existence in Iraq is conditional upon the previously agreed autonomous status for Kurdish areas, in accordance with the 2005 Iraqi constitution. These areas and in the case of Kirkuk, an important city beyond, have been thrown into chaos due to the unilateral secessionist referendum which was boycotted by Arabs and Turkomen who overwhelmingly support Baghdad.

Prior to the 25 September referendum, Iraqi Kurds enjoyed levels of regional autonomy that are unique in the context not only of the Middle East, but of most of the world. Even many Kurdish sympathisers are beginning to blame Iraqi Kurdish leader Masoud Barzani for overplaying his hand by holding a provocative referendum that was condemned by every major world and regional power with the notable exception of Israel.

With Peshmerga forces rapidly retreating and with no real chance for Israel to supply Iraqi Kurds without a massive military operation that would incur the wrath of the wider region, including and especially Turkey, the Kurds in Iraq are now effectively as materially isolated as Turkish President Erdogan warned that they would be, should they continue their provocative post-referendum stance.

The only other conceivable scenario is for the US to supply Iraqi Kurds from their bases in Iraq. This however would mean that the US would effectively be declaring war on Iraq. As I previously discussed, there is every possibility that the US is covertly hoping that a Kurdish insurrection in Iraq provokes a wider conflict that the ISIS insurgency would effectively draw Iran deeper into Iraq, making Iranian forces subject to attacks from US proxies or even US forces themselves. There is little doubt in my mind that such a scenario has already been put into action. However, today’s events mean that these scheme may have failed before it even had a chance to be fully realised.

Given how rapidly Iraqi troops have been advancing, taking seemingly all of Kirkuk after a surge which begun approximately 24 hours ago, even a superpower as brazen as the US is running out of options. This is especially true as the Turkish President has yet again reiterated his commitment to secure northern Iraq with the cooperation of Baghdad, a promise whose seriousness is only enhanced by the fact that recent reports have indicated the presence of PKK activity in Kurdish regions of Iraq.

Unless the US wars to destroy what remains of its relationship with Baghdad while also fighting both Turkey and Iran, there are fewer and fewer options for America’s would-be proxy war against Iran.

After years of division, Iraq is unifying around support for the operations in Kirkuk and so too is the region ever more united behind the legal Iraqi position. What’s more is that words like “war” and “aggression” and worse yet, talk of retaliation, is only coming out of Kurdish propaganda outlets. Iraq continues to calmly state that it is merely re-establishing control of an Iraqi city. Iraq’s Prime Minister has further stated that troops have been told not to fire upon Kurdish Peshmerga militants, although of course they have and apparently are exercising the right to fight back in instances when Peshmerga are not in full retreat.

As was the case in respect of the secession referendum, both Russia and the US have stated that they condemn all violence, but that both view the recent clashes as an unfortunate incident rather than a larger or more profound existential crisis. To put it another way, both the Russian Foreign Ministry and the US Department of State are being highly diplomatic. In Russia’s case, this is standard procedure. In respect of the United States, I personally suspect it is a matter of keeping one’s cards close to one’s chest.

The Kurdish regime in Erbil as well as its known and supine puppeteers have seemingly bitten off more than they can chew. Furthermore, with Peshmerga forces retreating en masse, reports from recent years, stating that the Peshmerga reached covert agreements with ISIS to relinquish control of certain parts of northern Iraq, rather than engaging one another on the battlefield, now seem eerily believable. In trying to create a clean break from Iraq, the Kurdish regime is instead airing some very dirty laundry, all while taking major steps back from its previously comfortable autonomous status quo which is now in jeopardy due to the actions of Masoud Barzani”.

BREAKING: Iraq claims full control of Kirkuk

Now that international observers have confirmed Iraq has regained full control of the region, what is most apparent is the fragmented nature of the Kurdish militias. While most Kurdish fighters retreated or put up no resistance, others were goaded into fighting by angry local Kurds. This effectively shatters the myth of a united Kurdish regime in Iraq and has exposed the decades long political divisions among Iraqi Kurds as being as fractious today as they have been in the past.

With Turkey and Iran once again closing airspace over Kurdish regions of Iraq, creating a de-facto no-fly-zone with the permission of Baghdad, Russia has stated that it will evacuate its consulate in the de-facto Kurdish capital of Erbil, due to safety concerns.

Iraqi troops have further advanced to Sinjar, reclaiming another strategically important location from Kurdish forces who again, did not put up any significant fight.

Iraq’s advances represent a watershed moment in national unity as most factions in the country have united behind the common Iraq flag against an overzealous Kurdish regime led by the secessionist Masoud Barzani. This has been countered by the fractious nature of Kurdish parties, in spite of a propaganda campaign from Kurdish media which seeks to insinuate a sectarian conflict, blaming Iran and its Shi’a allies for an ‘attack’ on Kurds. This is effectively the opposite of what is actually occurring, but this narrative does fit the agenda of many in the US who seek to pivot their Middle Eastern strategy from using jihadist proxies to weaken Arab countries in the region (especially those allied with Iran) to one which seeks to use Kurdish proxies to do the same.

This however presents a unique set of problems for the US, as I explored in a previous piece, reproduced below:

“Statements coming from the Kurdish regime in Northern Iraq, which appear to reject recent overtures made by Iraq to negotiate a restoration of the automatons status quo in Kurdish regions in North Iraq, indicate that the Kurds are not acting alone in their provocations against Baghdad.

The following statements were Tweeted from Kurdish leaders in the aftermath of a recent visit of Iraq’s Parliamentary Speaker to Kurdish regions, which constituted Baghdad’s sincere attempt to de-escalate tensions. These statements appear to negate the atmosphere which as of last week, was tense but seemingly in the midst of a partial thaw.

There will not be any unilateral negotiation with Baghdad by either PUK or KDP. If there be any negotiation with Baghdad it will be a joint delegation representing all Kurdistan parties. KDP/PUK reject any demands to nullify the referendum results. Refuse preconditions

The Meeting in Dukan between KDP/ PUK ended. Good news on reiterating our national unity in the face of all pressure. Our readiness to reach peaceful resolution for current standoff in all area. Rejecting military option, but ready to defend.

 Over the last 48 hours, events have intensified in northern Iraq, as Iraqi forces have started to re-establish control over the city of Kirkuk, which was unilaterally claimed as part of a would-be Kurdish state by the regime in Erbil, during the unilateral secession referendum held on the 25th of September, 2017.

Iraq’s positions is that any act of Kurdish secession is illegal and furthermore, a serious security threat to the Iraqi state and wider region. Furthermore, Iraq will never recognise Kirkuk as part of a Kurdish autonomous region, nor will the local Arab and Turkomen populations of Kirkuk who have all rallied behind Iraq, in a unique display of inter-sect (Sunni and Shi’a) and inter-ethnic unity in Iraq.

As Turkish President Erdogan has correctly stated; with Baghdad, Tehran, Ankara and Damascus, all in opposition to Kurdish secession in northern Iraq, there is simply no way for a would-be Kurdish statelet in northern Iraq to logistically nor economically survive. With Iran, Turkey and Iraq threatening to embargo and effectively besiege such an entity, were it to be unilaterally proclaimed, the only hope for such a so-called “Kurdistan” would be if it had external support from a non-bordering state.

A quick examination of the states technically capable of and politically willing to supply such a Kurdish entity, while overcoming the military might of Iran and Turkey, quickly points to only one power. This is the United States. Both in terms of its technical might and its track record of defying all norms of diplomatic relations, Washington is uniquely placed to aid a would-be Kurdistan built on Iraqi soil, in defiance of the entire region, except for Israel, which would almost certainly continue to provide support for Iraqi Kurds, especially if doing so along with the US. Russia and China by contrast, have firmly committed themselves to the territorial unity of Iraq.

Even by American standards, Washington is caught between a rock and a hard place in respect of a would be Kurdish entity in Iraq. On the one hand, if the United States were to defy Baghdad, it would mean that Iraq would become ever more detached from the already pessimistic nature of its cooperation with the United States. Simultaneous to this, Baghdad would almost certainly move even closer to Iran in terms of security cooperation, economic cooperation and a broader geo-political alignment.

The danger is that, with Iraq still recovering from years of invasion, occupation and terrorism, that radical voices, such as that of the apparently influential, though unhinged Nikki Haley, would press for a US intervention on behalf of Israeli geo-political ambitions, in order to bolster Kurds in Iraq. This would constitute a new stage of the ongoing proxy war against Iran and one which would increasingly and inevitably also grow into a conflict with Turkey, in spite of Turkey’s continued, however grudging NATO membership.

As I wrote yesterday in The Duran:

“Iraq’s present geo-political position is that of the only country in the world where the two most influential countries inside its borders are the United States and Iran. To put this in perspective, imagine a country where the two most influential powers, each with its own troops working with various factions of such a state’s army, were Japan and North Korea.

But this is the awkward reality of modern Iraq, a country whose armed forces coordinate airstrikes with the USA and where in other parts of the country, on the same day, members of Iran’s Islamic Revolutionary Guard Corps, train Iraqi troops and Popular Mobilization Units  to fight terrorism. What’s more is that Iraq has recently approached Iran to sign a wide ranging military security pact. All the while, the US maintains multiple military bases in Iraq, in addition to an embassy in Baghdad that is better described as a military fortress.

If the US was intent on ‘containing’ Iran at all costs or even maintain a power in the Middle East with a track record of not being afraid of Iran, the US could have simply continued to fund and arm Saddam Hussein. In rejecting Saddam and engaging in illegal regime change, the US severely underestimated the potential of a post-Ba’athist Iraq not to devolve into a battle ground of identity politics, one in which sheer mathematics would dictate more pro-Iranian factions than any other.

Now, the US is stuck in the rut that is contemporary Iraq. On the one hand, Iraq has been a major material investment for the US. This is one of the leading explanations for why the US condemned the recent Kurdish secession referendum in northern Iraq. Where Iraqi Kurds were once the go-to faction in Iraq for the US to undermine the old Ba’athist government and since 2003, a faction that the US exploited to promote a so-called ‘Iraqi success story’, today, the US wants to have its Kurdish cake and eat it too. In other words, while the US does not intend to publicly defame Iraqi Kurds, they also seek to preserve the unity of their investment called Iraq.

At least, this is what the US says in public, but privately, this may have already changed. Kurdish secessionists in Iraq decided to include the oil rich Iraqi city of Kirkuk on the map of a would-be Kurdish state, as part of the widely condemned secession referendum process. This has infuriated the Arab and Turkomen population of Kirkuk who see Kurds as attempting to annex a city which is not part of the existing autonomous Kurdish region of Iraq.

Over the last 24 hours, reports from Kirkuk, detailing intense fighting between the Iraqi military and the Kurdish Peshmerga militia. have been flowing in, albeit under the radar due to the media focusing more acutely on Donald Trump’s anti-Iran speech. While most Arab sources describe the battles as being fought between Iraqi Troops and Peshmerga, Kurdish outlets speak of clashes between a “foreign backed Iraqi army” along with Shi’a forces versus Peshmerga.

Thus one sees that generally pro-western and clearly pro-Israel Kurdish writers are proliferating a narrative where a foreign power, meaning Iran, is backing Shi’a Iraqis in a fight against Kurds.

The clear intention is to send the world a false message the the current fights in Kirkuk are an Iranian proxy battle against ‘wholesome Iraqi Kurds’. In reality, when reading between the liens, even in Kurdish propaganda outlets, one realises that the majority Shi’a Iraq army, the Sunni Arabs and Sunni Turkomen of Kirkuk, are all united behind the Iraqi flag against the Kurdish flag. In this sense, a battle which Kurds are trying to paint as a proxy sectarian war, is actually a rare example of Iraqi unity between Arabs and Turkomen, Shi’a and Sunni.

Thus, one sees the blueprint as well as the folly of the US and Israel’s real proxy war against Iran. Having failed in Syria and Lebanon, Iraq is the place where anti-Iranian forces will continue and likely ramp up their long-term anti-Tehran proxy war.

Whereas ISIS failed to destroy Iraq and also failed to limit Iranian influence on Iraq, the Kurds in Iraq will likely be the next proxy force used to attempt and draw Iran into a new conflict in Iraq. In the coming weeks and months, the headlines in fake news outlets warning of an ‘Iran/Hezbollah plot to take over Syria’, will likely be replaced with stories of ‘Iranian terrorists committing atrocities against Iraqi Kurds’. Of course, the more this strategy fails on the battle field, the more absurd the fake news stories will get, just as fake stories about Syrian chemical weapons tend to appear every time Damascus scores a substantial victory against al-Qaeda and ISIS.

The problem with the new plan for more proxy wars with Iran in Iraq, is that in the process, many Iraqi Arabs, as well as Iraqi Turkomen, may revive a pan-Iraqi identity in the process. Furthermore, if pro-Iranian Popular Mobilization Units in Iraq begin fighting for the rights of Sunni Arabs and Turkomen against Kurds, it could actually help to reconcile Iraqi Sunnis with Iraqi Shi’as.

This is the real game-plan against Iran and while it is a dangerous one, it ultimately will not be an effective one. In many ways, it may even be less effective than the attempt to use ISIS and other Takfiri groups to draw Iran into a losing war in the Arab world. Here, the opposite has happened, Iran has worked with legal state partners to cooperate and ultimately secure victory against Takfiri jihadists.

When and if the conflicts in Iraq finally end, the only question remaining will be: What to do with the deeply unpopular US bases in Iraq? There are only two options:

1. Perpetual stalemate

2. A 1975 Vietnam style withdrawal

The United States plans to end Iranian power in Iraq, but it is becoming increasingly likely that Iraq will instead be the graveyard of US hegemony. In many ways, it already is”.

The proxy-war against Iran is under way in Iraq and has just entered a new phase

In this sense, the ongoing Battle of Kirkuk is already a test of Iraqi unity versus that of Kurdish forces. This combined with Kurdish unwillingness to negotiate with a still surprisingly malleable Baghdad, would appear to indicate that the Kurds are biding their time and waiting to see if external support will come there way. Because of the vast American presence in Iraq, this ‘external’ support wouldn’t even be logistically difficult for the US, certainly not at first anyway.

Either the Kurds are once again hoping against hope and simply wishing for direct US assistance or they know something the rest of the world can only guess at. It is increasingly possible that the Kurds realise that contrary to US public statements in support of Iraq’s territorial unity, that a secret plan is being hatched to help Kurds secede from Iraq. In doing this, the US would also be hoping to drag Iran and Turkey into the Iraqi quagmire that was first authored by the US, Israel and Britain in 2003.

The entire scenario is dangerous beyond conventional belief, but it is looking ever more likely that such a storm may be brewing”.

While I still have few doubts that many in the US would like to use a Kurdish proxy war in Iraq to provoke and ideally weaken the Baghdad-Tehran alliance, the speed with which Iraqi troops have advanced in Kirkuk and nearby regions, indicates that such a strategy will not be as easy as some, including the overtly pro-Kurdish John McCain, may have suspected.

The US is currently maintaining an officially neutral stance on the Iraq-Kurdish militant clashes, for fear of alienating either side. However, with the Kurdish militants apparently failing to put up any meaningful fight, many in the US ought to be questioning the sheer logistical reliability of their would-be proxies in the continued US regional struggle against Iran. In this sense, the victory of Iraq and its allies, is a further sign that however much the US invests in the Middle East, it is local powers that are best placed to shape their own future. This is exactly what the Iraqis have accomplished in Kirkuk and nearby regions.

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Skripal and Khashoggi: A Tale of Two Disappearances

Two disappearances, and two different responses.

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Authored by Finian Cunningham via The Strategic Culture Foundation:


Two disappearances, and two very different responses from Western governments, which illustrates their rank hypocrisy.

When former Russian spy Sergei Skripal went missing in England earlier this year, there was almost immediate punitive action by the British government and its NATO allies against Moscow. By contrast, Western governments are straining with restraint towards Saudi Arabia over the more shocking and provable case of murdered journalist Jamal Khashoggi.

The outcry by Western governments and media over the Skripal affair was deafening and resulted in Britain, the US and some 28 other countries expelling dozens of Russian diplomats on the back of unsubstantiated British allegations that the Kremlin tried to assassinate an exiled spy with a deadly nerve agent. The Trump administration has further tightened sanctions citing the Skripal incident.

London’s case against Moscow has been marked by wild speculation and ropey innuendo. No verifiable evidence of what actually happened to Sergei Skripal (67) and his daughter Yulia has been presented by the British authorities. Their claim that President Vladimir Putin sanctioned a hit squad armed with nerve poison relies on sheer conjecture.

All we know for sure is that the Skripals have been disappeared from public contact by the British authorities for more than seven months, since the mysterious incident of alleged poisoning in Salisbury on March 4.

Russian authorities and family relatives have been steadfastly refused any contact by London with the Skripal pair, despite more than 60 official requests from Moscow in accordance with international law and in spite of the fact that Yulia is a citizen of the Russian Federation with consular rights.

It is an outrage that based on such thin ice of “evidence”, the British have built an edifice of censure against Moscow, rallying an international campaign of further sanctions and diplomatic expulsions.

Now contrast that strenuous reaction, indeed hyper over-reaction, with how Britain, the US, France, Canada and other Western governments are ever-so slowly responding to Saudi Arabia over the Khashoggi case.

After nearly two weeks since Jamal Khashoggi entered the Saudi consulate in Istanbul, Turkey, the Saudi regime is this week finally admitting he was killed on their premises – albeit, they claim, in a “botched interrogation”.

Turkish and American intelligence had earlier claimed that Khashoggi was tortured and murdered on the Saudi premises by a 15-member hit squad sent from Riyadh.

Even more grisly, it is claimed that Khashoggi’s body was hacked up with a bone saw by the killers, his remains secreted out of the consulate building in boxes, and flown back to Saudi Arabia on board two private jets connected to the Saudi royal family.

What’s more, the Turks and Americans claim that the whole barbaric plot to murder Khashoggi was on the orders of senior Saudi rulers, implicating Crown Prince Mohammed bin Salman. The latest twist out of Riyadh, is an attempt to scapegoat “rogue killers” and whitewash the House of Saudi from culpability.

The fact that 59-year-old Khashoggi was a legal US resident and a columnist for the Washington Post has no doubt given his case such prominent coverage in Western news media. Thousands of other victims of Saudi vengeance are routinely ignored in the West.

Nevertheless, despite the horrific and damning case against the Saudi monarchy, the response from the Trump administration, Britain and others has been abject.

President Trump has blustered that there “will be severe consequences” for the Saudi regime if it is proven culpable in the murder of Khashoggi. Trump quickly qualified, however, saying that billion-dollar arms deals with the oil-rich kingdom will not be cancelled. Now Trump appears to be joining in a cover-up by spinning the story that the Khashoggi killing was done by “rogue killers”.

Britain, France and Germany this week issued a joint statement calling for “a credible investigation” into the disappearance. But other than “tough-sounding” rhetoric, none of the European states have indicated any specific sanctions, such as weapons contracts being revoked or diplomatic expulsions.

Canadian Prime Minister Justin Trudeau said he was “concerned” by the gruesome claims about Khashoggi’s killing, but he reiterated that Ottawa would not be scrapping a $15 billion sale of combat vehicles to Riyadh.

The Saudi rulers have even threatened retaliatory measures if sanctions are imposed by Western governments.

Saudi denials of official culpability seem to be a brazen flouting of all reason and circumstantial evidence that Khashoggi was indeed murdered in the consulate building on senior Saudi orders.

This week a glitzy international investor conference in Saudi Arabia is being boycotted by top business figures, including the World Bank chief, Jim Yong Kim, JP Morgan CEO Jamie Dimon and Britain’s venture capitalist Richard Branson. Global firms like Ford and Uber have pulled out, as have various media sponsors, such as CNN, the New York Times and Financial Times. Withdrawal from the event was in response to the Khashoggi affair.

A growing bipartisan chorus of US Senators, including Bob Corker, Marco Rubio, Lindsey Graham and Chris Murphy, have called for the cancellation of American arms sales to Saudi Arabia, as well as for an overhaul of the strategic partnership between the two countries.

Still, Trump has rebuffed calls for punitive response. He has said that American jobs and profits depend on the Saudi weapons market. Some 20 per cent of all US arms sales are estimated to go to the House of Saud.

The New York Times this week headlined: “In Trump’s Saudi Bargain, the Bottom Line Proudly Stands Out”.

The Trump White House will be represented at the investment conference in Saudi Arabia this week – dubbed “Davos in the Desert” by Treasury Secretary Steven Mnuchin. He said he was attending in spite of the grave allegations against the Saudi rulers.

Surely the point here is the unseemly indulgence by Western governments of Saudi Arabia and its so-called “reforming” Crown Prince. It is remarkable how much credulity Washington, London, Paris, Ottawa and others are affording the Saudi despots who, most likely, have been caught redhanded in a barbarous murder.

Yet, when it comes to Russia and outlandish, unproven claims that the Kremlin carried out a bizarre poison-assassination plot, all these same Western governments abandon all reason and decorum to pile sanctions on Russia based on lurid, hollow speculation. The blatant hypocrisy demolishes any pretense of integrity or principle.

Here is another connection between the Skripal and Khashoggi affairs. The Saudis no doubt took note of the way Britain’s rulers have shown absolute disregard and contempt for international law in their de facto abduction of Sergei and Yulia Skripal. If the British can get away with that gross violation, then the Saudis probably thought that nobody would care too much if they disappeared Jamal Khashoggi.

Grotesquely, the way things are shaping up in terms of hypocritical lack of action by the Americans, British and others towards the Saudi despots, the latter might just get away with murder. Not so Russia. The Russians are not allowed to get away with even an absurd fantasy.

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US-China trade war heats up as surplus hits record $34 Billion (Video)

The Duran – News in Review – Episode 136.

Alex Christoforou

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According to a report by the AFP, China’s trade surplus with the United States ballooned to a record $34.1 billion in September, despite a raft of US tariffs, official data showed Friday, adding fuel to the fire of a worsening trade war.

Relations between the world’s two largest economies have soured sharply this year, with US President Donald Trump vowing on Thursday to inflict economic pain on China if it does not blink.
The two countries imposed new tariffs on a massive amount of each other’s goods mid-September, with the US targeting $200 billion in Chinese imports and Beijing firing back at $60 billion worth of US goods.

“China-US trade friction has caused trouble and pounded our foreign trade development,” customs spokesman Li Kuiwen told reporters Friday.

But China’s trade surplus with the US grew 10 percent in September from a record $31 billion in August, according to China’s customs administration. It was a 22 percent jump from the same month last year.

China’s exports to the US rose to $46.7 billion while imports slumped to $12.6 billion.

China’s overall trade — what it buys and sells with all countries including the US — logged a $31.7 billion surplus, as exports rose faster than imports.

Exports jumped 14.5 percent for September on-year, beating forecasts from analysts polled by Bloomberg News, while imports rose 14.3 percent on-year.

While the data showed China’s trade remained strong for the month, analysts forecast the trade war will start to hurt in coming months.

China’s export jump for the month suggests exporters were shipping goods early to beat the latest tariffs, said ANZ’s China economist Betty Wang, citing the bounce in electrical machinery exports, much of which faced the looming duties.

“We will watch for downside risks to China’s exports” in the fourth quarter, Wang said.

Analysts say a sharp depreciation of the yuan has also helped China weather the tariffs by making its exports cheaper.

“The big picture is the Chinese exports have so far held up well in the face of escalating trade tensions and cooling global growth, most likely thanks to the competitiveness boost provided by a weaker renminbi (yuan),” said Julian Evans-Pritchard, China economist at Capital Economics.

“With global growth likely to cool further in the coming quarters and US tariffs set to become more punishing, the recent resilience of exports is unlikely to be sustained,” he said.

According to Bloomberg US President Donald Trump’s new U.S.-Mexico-Canada Agreement isn’t that different from the North American Free Trade Agreement that it replaced. But hidden in the bowels of the new trade deal is a clause, Article 32.10, that could have a far-reaching impact. The new agreement requires member states to get approval from the other members if they initiate trade negotiations with a so-called non-market economy. In practice, “non-market” almost certainly means China. If, for example, Canada begins trade talks with China, it has to show the full text of the proposed agreement to the U.S. and Mexico — and if either the U.S. or Mexico doesn’t like what it sees, it can unilaterally kick Canada out of the USMCA.

Although it seems unlikely that the clause would be invoked, it will almost certainly exert a chilling effect on Canada and Mexico’s trade relations with China. Forced to choose between a gargantuan economy across the Pacific and another one next door, both of the U.S.’s neighbors are almost certain to pick the latter.

This is just another part of Trump’s general trade waragainst China. It’s a good sign that Trump realizes that unilateral U.S. efforts alone won’t be enough to force China to make concessions on issues like currency valuation, intellectual-property protection and industrial subsidies. China’s export markets are much too diverse:

If Trump cuts the U.S. off from trade with China, the likeliest outcome is that China simply steps up its exports to other markets. That would bind the rest of the world more closely to China and weaken the global influence of the U.S. China’s economy would take a small but temporary hit, while the U.S. would see its position as the economic center of the world slip into memory.

Instead, to take on China, Trump needs a gang. And that gang has to be much bigger than just North America. But most countries in Europe and East Asia probably can’t be bullied into choosing between the U.S. and China. — their ties to the U.S. are not as strong as those of Mexico and Canada. Countries such as South Korea, Germany, India and Japan will need carrots as well as sticks if they’re going to join a U.S.-led united trade front against China.

The Duran’s Alex Christoforou and Editor-in-Chief Alexander Mercouris discuss the escalating trade war between the United States and China, and the record trade surplus that positions China with a bit more leverage than Trump anticipated.

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Via Zerohedge Trump Threatens China With More Tariffs, Does Not Seek Economic “Depression”

US equity futures dipped in the red after President Trump threatened to impose a third round of tariffs on China and warned that Chinese meddling in U.S. politics was a “bigger problem” than Russian involvement in the 2016 election.

During the same interview with CBS’s “60 Minutes”, in which Trump threatened to impose sanctions against Saudi Arabia if the Saudis are found to have killed WaPo reported Khashoggi, and which sent Saudi stock plunging, Trump said he “might,” impose a new round of tariffs on China, adding that while he has “great chemistry” with Chinese President Xi Jinping, and noting that Xi “wants to negotiate”, he doesn’t “know that that’s necessarily going to continue.” Asked if American products have become more expensive due to tariffs on China, Trump said that “so far, that hasn’t turned out to be the case.”

“They can retaliate, but they can’t, they don’t have enough ammunition to retaliate,” Trump says, “We do $100 billion with them. They do $531 billion with us.”

Trump was also asked if he wants to push China’s economy into a depression to which the US president said “no” before comparing the country’s stock-market losses since the tariffs first launched to those in 1929, the start of the Great Depression in the U.S.

“I want them to negotiate a fair deal with us. I want them to open their markets like our markets are open,” Trump said in the interview that aired Sunday. So far, the U.S. has imposed three rounds of tariffs on Chinese imports totaling $250 billion, prompting China to retaliate against U.S. products. The president previously has threatened to hit virtually all Chinese imports with duties.

Asked about his relationship with Vladimir Putin and the Kremlin’s alleged efforts to influence the 2016 presidential election, Trump quickly turned back to China. “They meddled,” he said of Russia, “but I think China meddled too.”

“I think China meddled also. And I think, frankly, China … is a bigger problem,” Trump said, as interviewer Lesley Stahl interrupted him for “diverting” from a discussion of Russia.

Shortly before an audacious speech by Mike Pence last weekend, in which the US vice president effectively declared a new cold war on Beijing (see “Russell Napier: Mike Pence Announces Cold War II”), Trump made similar accusations during a speech at the United Nations last month, which his aides substantiated by pointing to long-term Chinese influence campaigns and an advertising section in the Des Moines Register warning farmers about the potential effects of Trump’s tariffs.

Meanwhile, in a rare U.S. television appearance, China’s ambassador to the U.S. said Beijing has no choice but to respond to what he described as a trade war started by the U.S.

“We never wanted a trade war, but if somebody started a trade war against us, we have to respond and defend our own interests,” said China’s Ambassador Cui Tiankai.

Cui also dismissed as “groundless” the abovementioned suggestion by Vice President Mike Pence that China has orchestrated an effort to meddle in U.S. domestic affairs. Pence escalated the rhetoric in a speech Oct. 4, saying Beijing has created a “a whole-of-government approach” to sway American public opinion, including spies, tariffs, coercive measures and a propaganda campaign.

Pence’s comments were some of the most critical about China by a high-ranking U.S. official in recent memory. Secretary of State Michael Pompeo got a lecture when he visited Beijing days later, about U.S. actions that were termed “completely out of line.” The tough words followed months of increases tit-for-tat tariffs imposed by Washington and Beijing that have ballooned to cover hundreds of billions of dollars in bilateral trade.

During a recent interview with National Public Radio, Cui said the U.S. has “not sufficiently” dealt in good faith with the Chinese on trade matters, saying “the U.S. position keeps changing all the time so we don’t know exactly what the U.S. would want as priorities.”

Meanwhile, White House economic director Larry Kudlow said on “Fox News Sunday” that President Donald Trump and Chinese President Xi Jinping will “probably meet” at the G-20 summit in Buenos Aires in late November. “There’s plans and discussions and agendas” being discussed, he said. So far, talks with China on trade have been “unsatisfactory,” Kudlow said. “We’ve made our asks” on allegations of intellectual property theft and forced technology transfers, he added. “We have to have reciprocity.”

Addressing the upcoming meeting, Cui said he was present at two previous meetings of Xi and Trump, and that top-level communication “played a key role, an irreplaceable role, in guiding the relationship forward.” Despite current tensions the two have a “good working relationship,” he said.

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BREAKING: Explosion in Crimea, Russia kills many, injuring dozens, terrorism suspected

According to preliminary information, the incident was caused by a gas explosion at a college facility in Kerch, Crimea.

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“We are clarifying the information at the moment. Preliminary figures are 50 injured and 10 dead. Eight ambulance crews are working at the site and air medical services are involved,” the press-service for the Crimean Ministry of Health stated.

Medics announced that at least 50 people were injured in the explosion in Kerch and 25 have already been taken to local hospital with moderate wounds, according to Sputnik.

Local news outlets reported that earlier in the day, students at the college heard a blast and windows of the building were shattered.

Putin Orders that Assistance Be Provided to Victims of Blast in Kerch – Kremlin Spokesman

“The president has instructed the Ministry of Health and the rescue services to take emergency measures to assist victims of this explosion, if necessary, to ensure the urgent transportation of seriously wounded patients to leading medical institutions of Russia, whether in Moscow or other cities,” Kremlin spokesman Dmitriy Peskov said.

The president also expressed his condolences to all those affected by the tragic incident.

Manhunt Underway in Kerch as FSB Specialists Investigate Site of Explosion – National Anti-Terrorist Committee

The site of the blast that rocked a city college in Kerch is being examined by FSB bomb disposal experts and law enforcement agencies are searching for clues that might lead to the arrest of the perpetrators, the National Anti Terrorism Committee said in a statement.

“Acting on orders from the head of the NAC’s local headquarters, FSB, Interior Ministry, Russian Guards and Emergency Ministry units have arrived at the site. The territory around the college has been cordoned off and the people inside the building evacuated… Mine-disposal experts are working at the site and law enforcement specialists are investigating,” the statement said.

Terrorist Act Considered as Possible Cause of Blast in Kerch – Kremlin Spokesman

“The tragic news that comes from Kerch. Explosion. The president was informed … The data on those killed and the number of injured is constantly updated,” Peskov told reporters.

“[The version of a terrorist attack] is being considered,” he said.

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